Today (19th) at 3 a.m., the U.S. Federal Reserve announced its interest rate decision, declaring a rate cut of 25 basis points, lowering the benchmark interest rate to 4.25%–4.5%. However, due to the extent of the downward adjustment of next year's interest rate expectations being lower than market expectations, Bitcoin immediately entered a downward trend, plummeting from a high of $104,800 to a low of $100,000, with a short-term decline of 4.6%. At the time of writing, Bitcoin is reported at $98,936.
Another potential factor triggering sell-offs is that Fed Chairman Powell clearly stated at the FOMC press conference: 'We are not allowed to hold Bitcoin.' Regarding the legal issues of the Fed holding Bitcoin, he added: 'This is something Congress needs to decide; we have no intention of pushing for legal changes.'
Ethereum dipped to $3,617.
Similarly, Ethereum also began to decline after the interest rate decision was announced, dropping from a high of $3,907 to as low as $3,617, with a short-term decline of 6.8%. Before the deadline, it is reported at $3,589, down 6.45% in the last 24 hours.
In the last 24 hours, liquidations reached $702 million.
On the other hand, according to Coinglass data, the total liquidation amount in the cryptocurrency market reached $702 million in the past 24 hours, with long positions liquidating $608 million dominating, and short positions liquidating $93.57 million, with over 25,300 people being liquidated.
Next, attention should be focused on the Bank of Japan's monetary policy meeting at 11 a.m. on December 19. The following are the key points summarizing this round of market turbulence:
Core trading principle: It’s not about who earns more, but who survives longer. Maintain sufficient positions to respond to opportunities for replenishing mainstream coins, and learn to persevere amidst market turbulence.
BTC trend: Daily top fractal has been established, and the correction is not yet over. Focus on the two key support levels of 94,150 and 90,500.
ETH strategy: The short cycle has not stopped declining, with key support levels at 3,510 and 3,462. Prepare for entry, with a stop-loss set at 3,430.
Altcoin opportunities: ETH/BTC ratio has bottomed out, altcoins are about to hit the floor, suggesting that you should gradually accumulate leading projects in each sector.
Historical pattern: After the last three FOMC meetings, Bitcoin's dominance decreased, and altcoins generally rebounded.
Altcoin season signal: The current situation may be the last drop before the start of altcoin season. Remember not to panic sell and be patient.
ENA update: Trump announced the purchase of ENA and reached a collaboration with BlackRock, suggesting to wait for the price to pull back to the 0.95-1u range before entering.
Although the market is turbulent, opportunities are often hidden in panic. Act rationally and wait for the dawn.
Today's article ends here. Currently in a bull market, with dynamic changes, we share passwords every day. If you don't know what to do in a bull market, feel free to follow us for spot trading passwords and layout strategies, which can be shared free of charge.
